S&P gives Renaissance Learning B, loan BB-

Standard & Poor's said it assigned its preliminary B corporate credit rating to Renaissance Learning Inc. The outlook is stable.

The agency said it also assigned preliminary BB- issue-level and preliminary 1 recovery ratings to Renaissance's proposed $195 million senior secured credit facilities.

The proposed senior secured credit facilities consist of a $20 million revolving credit facility due 2016 and a $175 million term loan B due 2017, the agency stated.

According to S&P, the company intends to use the proceeds, along with a proposed $75 million second-lien term loan due 2018 (unrated), an equity contribution of $197 million from the sponsor and $33 million cash on hand, to fund the purchase of Renaissance.

"The ratings on Renaissance reflect government budget headwinds and its highly leveraged financial profile," said S&P credit analyst David Tsui.

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